Mark Cuban rails against memecoins like Official Trump: You get 'a seat in a game of musical chairs'

Quick Take

  • Entrepreneur Mark Cuban spoke out against memecoins, arguing that they don’t offer any utility and that Trump launching a memecoin should not be an excuse to avoid all securities laws.
  • He said he invests in crypto because he hopes smart contracts will create valuable applications.

Billionaire entrepreneur Mark Cuban criticized the crypto community's reaction to President-elect Donald Trump launching his own memecoin, arguing that such tokens provide little value and that the rules still need to be followed.

Cuban was responding to a thread that suggested Trump's memecoin Official Trump has removed regulatory concerns from potential token issuers, opening the doors for every company to have its own token. The Shark Tank host said this approach would avoid real ownership and only lead to speculation.

"Hello every scam targeted at everyone and anyone who has no clue about crypto," Cuban posted on X. "Good bye whatever hope the crypto industry had of legitimizing itself."

Cuban said that if the new SEC Chair took this approach, he couldn't enforce any SEC law.

"Rather than modifying the IPO process to accept crypto and give investors some understanding of what they are buying, any registration requirements just flew out the window," he added.

In follow-up comments, Cuban questioned whether there would be any value proposition or utility to the buyer if entities like Harvard created their own tokens.

When someone argued that token contracts could help projects prove ownership of tokens — while it's hard to prevent against fakes in real life — Cuban was critical that most people would understand how it worked, adding, "And what exactly do you get with a meme coin except a seat in a game of musical chairs?"


Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Tim is the Editor-In-Chief of The Block. He writes about the evolution of crypto technology and the people who are at the forefront of it. He provided exclusive, source-based insights into the launches of the Bitcoin and Ethereum ETFs, crypto sales by the FTX Estate and the Trump-linked World Liberty Financial project. Prior to joining The Block, Tim was a news editor at Decrypt. He earned a bachelor's degree in philosophy from the University of York and studied news journalism at Press Association Training. Follow him on X @Timccopeland.

Editor

To contact the editor of this story:
Lawrence Lewitinn at
[email protected]

WHO WE ARE

The Block is a news provider that strives to be the first and final word on digital assets news, research, and data.

+ Follow us on Google News
Connect with the block on